The Honourable Sean Fraser, Minister of Housing, Infrastructure and Communities Appearance before the Standing Committee on Indigenous and Northern Affairs (INAN)
Subject: OAG Report 2 on Housing in First Nations Communities
Date: Monday, June 3, 2024 (11:00 a.m. - 12:00 p.m.)
Location: Wellington Building, Room 425

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8. National Housing Strategy
9. Federal Homelessness Programming
10. PBO Report on Federal Spending to Address Homelessness

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National Housing Strategy

Issue / question

What are the key accomplishments in housing since the launch of the National Housing Strategy?

Suggested response

• Housing affordability and housing supply are real challenges faced by many Canadians. To give more Canadians a place to call home, the Government of Canada launched the $82+ billion, 10 year National Housing Strategy (NHS).
• Since launching the Strategy in 2017, we have made over $50 billion in commitments to support affordable housing, the creation of new units and the repair of existing ones.
• The NHS delivers concrete results. Since its launch, the federal government has supported or committed to the creation of 146,408 new units and the repair of 286,992 units.
• Through bilateral agreements with all 13 provinces and territories, the NHS has also invested $1.86 billion from the federal government in supports and programming delivered by provinces and territories.

Background

• Canada’s National Housing Strategy (NHS) sets ambitious targets to ensure that unprecedented investments and new programming deliver results. The Government of Canada is focused on its commitment to eliminate chronic homelessness in Canada, and take as many as 530,000 households out of core housing need. The NHS will result in up to 160,000 new housing units and 300,000 repaired or renewed housing units.
• Through initiatives like the Affordable Housing Fund, the community housing initiatives, and funding to provinces and territories, the NHS is creating, and will continue to create, a new generation of housing in Canada. Our plan is promoting diverse and inclusive communities. It is building housing that is sustainable, accessible, mixed-income, and mixed-use. We are building housing that is fully integrated into the community — close to transit, close to work, and close to public services.
• Expanded and reformed federal homelessness programming, a Canada Housing Benefit, and a human rights-based approach to housing will continue to ensure that the NHS prioritizes the most vulnerable Canadians including women and children fleeing family violence, Indigenous peoples, seniors, people with disabilities, those dealing with mental health and addiction issues, Veterans, young adults, and those experiencing or at risk of homelessness. Programs in the NHS are based on best evidence and ongoing input from people with lived experience of housing need.
• The NHS respects the Government of Canada’s commitment to working on a nation-to-nation, Inuit-to-Crown, government-to-government basis with Indigenous Peoples, which is why Indigenous Services Canada and Crown-Indigenous Relations and Northern Affairs Canada, with support from Canada Mortgage and Housing Corporation, is engaged with First Nations, Métis Nation, and Inuit partners to develop three distinctions-based housing strategies.
  • The three distinctions-based housing strategies are: the National First Nations Housing and Related Infrastructure Strategy, the Inuit Nunangat Housing Strategy, and the Métis Nation Housing Sub Accord.
• Budget 2024 and the 2023 Fall Economic Statement propose a series of new housing related initiatives and programs and increases funding for existing NHS programs. Not accounted for the in the $82+ billion figure, increases include an additional $30 billion for the Apartment Construction Loan Program, $400 million for the Housing Accelerator Fund, $2 billion for the Affordable Housing Fund and $117 million for the Federal Lands Initiative.
• This new funding aims to reduce barriers to new construction for homebuilders, build affordable housing and provide shelter to those without homes, and make it more affordable to rent and own a home.
• On May 31, 2024, the second triennial report on the progress of the NHS was tabled in the House of Commons. Evaluations have consistently found that NHS programs continue to respond to housing needs and that in the majority of cases, they are on track to deliver against commitments and targets.
• The NHS set out a long-term vision – that Canadians have housing that meets their needs and that they can afford. The Government of Canada remains committed to that vision. That said, the Government of Canada recognizes that the environment has evolved significantly since 2017. The complexity of the housing supply and affordability crisis we face today calls for targeted action that brings together all key actors in the housing system and beyond to drive a whole-of-government, and whole-of-society response.
• Building on and complementing the achievements of the NHS, Canada’s Housing Plan, announced on April 12, 2024, is broadening and intensifying the Government of Canada’s efforts to address the housing crisis we face today head on. It sets out an ambitious strategy to make housing more attainable and affordable, where everyone has a place to call home. The Housing Plan includes three pillars: building more homes, making it easier to rent or buy a home, and helping Canadians who can’t afford a home.

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Federal Homelessness Programming

Issue / question

What is the Government of Canada doing to address homelessness?

Suggested response

• Homelessness is a complex issue, and our government is committed to working with partners and communities to eliminate chronic homelessness in Canada by 2030. That is why we are investing $4 billion over nine years through Reaching Home to support communities in their vital work to prevent and reduce homelessness.
• Recognizing the seriousness of winter weather and the dangers it brings to people experiencing unsheltered homelessness, the Government of Canada is providing $100 million as a one-time allocation for emergency 2023-24 winter funding.
• Since 2019, Reaching Home has supported almost 7,000 projects. Through these projects, over 71,000 people have been placed in more stable housing, and over 125,000 people have received homelessness prevention services such as rental assistance or landlord mediation.
• Budget 2022 announced $18.1 million over three years to support Action Research on Chronic Homelessness to identify actions needed to eliminate chronic homelessness.
• In April 2023, the Government of Canada launched a new Veteran Homelessness Program that will deliver $79.1 million to provide housing support and services to veterans experiencing, or at risk of homelessness.

Background

• Budget 2022: On April 7, 2022, the Budget announced:
  • an investment of $562.2 million over two years through Reaching Home, beginning in 2024-25;
  • $18.1 million over three years, beginning in 2022-23, to conduct action research to identify further measures required to eliminate chronic homelessness; and
  • a commitment to eliminating chronic homelessness in Canada by 2030.
• Reaching Home: Canada’s Homelessness Strategy
• As part of the National Housing Strategy, the Government launched Reaching Home in 2019. This community-based program funds specific communities through the Designated Communities, Indigenous Homelessness, Rural and Remote Homelessness and Territorial Homelessness streams.
• Since April 1, 2019, Reaching Home has supported almost 7,000 projects:
  • 71,590 people have been placed in more stable housing;
  • 31,805 people began receiving income assistance;
  • 125,154 people received prevention services such as rental assistance or landlord mediation; and
  • 12,474 people started new paid employment.
• Reaching Home in Quebec: The Designated Communities stream and the Rural and Remote Homelessness stream are governed by a Canada-Quebec Agreement that respects the jurisdictions and priorities of both governments in the prevention and reduction of homelessness.  Negotiations with the Government of Quebec are currently ongoing to extend the Canada-Quebec Agreement to 2026, and to flow Reaching Home base funding, and additional funding announced in Budget 2022, to communities. The Indigenous Homelessness stream is administered by Infrastructure Canada throughout the province and is not under a Canada-Quebec Agreement.
• Action Research on Chronic Homelessness: These initiatives will inform the development of a broader strategy and identify actions needed to eliminate chronic homelessness by exploring ways to break down persistent barriers encountered by communities and facilitating broad scale learning and knowledge sharing between communities and jurisdictions across Canada.
• To do this, action research sites will:
  • Identify and document persistent barriers encountered by communities to reducing and ending chronic homelessness; and
  • Test potential approaches to address persistent barriers and document successes and challenges.
• Veteran Homelessness Program: The Services and Supports Stream will provide $72.9 million in funding for rent supplements and wrap-around services (such as counselling and treatment for substance use) and the Capacity Building Stream will provide $6.2 million in funding to support research on veteran homelessness and capacity building. Negotiations are underway with successful applicants. Service providers are expected to start offering services in 2024.
• One-time winter funding allocation: Winter weather presents additional risks to people experiencing homelessness in unsheltered areas/outdoors. With local shelter systems, and the homeless-serving sector as a whole, nearing capacity in most regions, there is an urgent need for communities to expand their local responses this winter. To support communities in responding to unsheltered homelessness, the Government of Canada is providing $100 million for emergency 2023-24 winter funding under Reaching Home. This funding has been allocated to communities under the Designated Communities, Indigenous Homelessness, and Territorial Homelessness streams.

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PBO Report on Federal Spending to Address Homelessness

Issue / question

The Parliamentary Budget Officer says that it would take an additional $3.5 billion per year to eliminate chronic homelessness. How will the federal government fulfill its commitment to end chronic homelessness by 2030?

Suggested response

• We thank the Parliamentary Budget Officer for this report. Homelessness is a complex issue, and the federal government is committed to working with partners and communities to eliminate chronic homelessness in Canada by 2030.
• As noted in the report, Reaching Home: Canada’s Homelessness Strategy is making a difference. The report estimates that without this program, about 6,000 more people would be without housing. With the additional $1.3 billion in funding announced in Budget 2024, the Government of Canada is investing $5.3 billion over nine years, from 2019-20 to 2027-28, in homelessness programming.
• Since 2019, Reaching Home has supported over 7,200 projects. Through these projects, over 71,500 people have been placed in more stable housing, and over 126,700 people have received homelessness prevention services such as rental assistance or landlord mediation.

Background

• On May 22, 2024, the Parliamentary Budget Officer (PBO) published a report on homelessness, and the unique challenges and responses required to address it.
• The report makes the following observations and estimations about Reaching Home: Canada’s Homelessness Strategy:
• Since the 2018 Point-in-Time counts, homelessness has increased by 20%, chronic homelessness has increased by 38%, and unsheltered homelessness has increased by 88%;
• While results related to housing placements did not meet targets in the first years, it is noted that targets for prevention services were surpassed and the COVID-19 pandemic was an intervening factor;
• 6,000 more people per year would be without housing if not for the program;
• an additional $3.5 billion annually would be needed to achieve the goal of reducing chronic homelessness by 50% of the 2018 baseline.
• Budget 2024: On April 16, 2024, the Budget announced:
  • an additional amount of $1 billion over four years, starting in 2024-25, to stabilize funding under Reaching Home;
  • an investment of $250 million over two years, starting in 2024-25, to address the urgent issue of encampments and unsheltered homelessness.
• Reaching Home: Canada’s Homelessness Strategy
• As part of the National Housing Strategy, the Government of Canada launched Reaching Home in 2019. This community-based program funds specific communities through the Designated Communities, Indigenous Homelessness, Rural and Remote Homelessness and Territorial Homelessness streams.
• Since April 1, 2019, Reaching Home has supported over 7,200 projects:
  • 71,567 people have been placed in more stable housing;
  • 31,950 people began receiving income assistance;
  • 126,752 people received prevention services such as rental assistance or landlord mediation; and
  • 12,511 people started new paid employment.
• As acknowledged in the PBO report, the COVID-19 pandemic was an intervening factor in Reaching Home’s ability to meet housing placement targets. To enable physical distancing and keep shelter users safe, Reaching Home introduced temporary flexibilities and emergency COVID-19 funding. Through these measures, over 27,000 temporary accommodations (e.g. hotel rooms) were made available in response to the pandemic, and there were over 222,400 placements in these types of temporary accommodations.

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